Finansowanie10 min read

Agricultural leasing — complete guide

Leasing is the most common form of financing for agricultural machinery. How to choose between operating and finance lease, and what to look out for.

Leasing is the most commonly chosen form of financing the purchase of agricultural machinery in Poland. Over 60% of new machines go to farms on leasing. Why? Because it does not require large equity, allows VAT to be deducted and lets instalments be booked as costs.

Operating lease: instalments are a cost of earning revenue, VAT is paid on each instalment (not upfront), and after the contract ends there is an option to buy the machine for 1% of its value. Best for farmers on full bookkeeping.

Finance lease: the machine becomes the lessee’s property straight away (depreciation), and only the interest part of the instalment is a cost. Better for farmers with large depreciation write-offs.

What to watch for: RRSO (annual effective interest rate), up-front fee, final fee (buy-out), insurance included in the instalments or charged separately, and early repayment fee. You can calculate the specific leasing instalment, up-front fee and buy-out for your chosen machine in the financing calculator.

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